Crude retreated as winter storm disruptions eased and OPEC+ caution offsets Middle East tension
Oil prices settled lower on Monday as the immediate supply impact from US winter storms began to subside, though losses were capped by expectations of steady OPEC+ production and intensifying Middle East tensions.
Oil prices settled lower on Monday as the immediate supply impact from US winter storms began to subside, though losses were capped by expectations of steady OPEC+ production and intensifying Middle East tensions.
Brent crude futures settled down 29 cents, or 0.4%, at $65.59 per barrel, while WTI crude fell 44 cents, or 0.7%, to $60.63.
Despite the daily retreat, benchmarks maintained a firm underlying tone after notching 2.7% gains last week to reach their highest levels since mid-January.
Market sentiment turned more bearish as reports indicated that US production losses from the weekend’s winter storms were already easing, with output set to be fully restored by the end of the month. Similarly, Kazakhstan moved toward resuming production at its largest field, further alleviating immediate supply-side anxieties.
The market’s floor is further reinforced by indications that OPEC+ will likely maintain its pause on oil output increases through March. This cautious approach by major producers, combined with ongoing diplomatic efforts in the Russia-Ukraine conflict, remains a primary pressure point for prices. Long-term volatility also persists in the background, with industry analysts warning that US shale production could contract by 400,000 barrels per day should a market-share battle drive prices toward the $40 threshold.
Written by: Aiman Haikal